Rio Tinto voices concern over China trial

Asian Defense News: SYDNEY (AFP) - – Rio Tinto voiced concern Thursday after China said it will try four staff on industrial espionage charges, reviving jitters about the potential pitfalls for foreign companies doing business with Beijing.
Australia urged China to show transparency in its handling of the trial of Australian executive Stern Hu and three Chinese colleagues who were arrested in Shanghai seven months ago.
Beijing insisted the case would be handled by the book and that it would "fully guarantee" the rights of the employees, but said the trial was likely to be held behind closed doors.
Their detention in July came during fractious iron ore contract talks which later lapsed and just weeks after Anglo-Australian giant Rio Tinto snubbed a near 20-billion dollar cash injection from a state-run Chinese company.
Analysts said business leaders would keep a close eye on the proceedings to gauge the pitfalls of engaging with China, the world's top exporter whose breakneck growth defied the global slowdown.
"We are very concerned about the nature of these charges, however, as this is part of an ongoing legal process, it is inappropriate to comment any further," Rio Tinto's iron ore division chief Sam Walsh said in a statement, calling for "transparent and expeditious" resolution of the case.
Rio Tinto, the world's third biggest miner, has previously said it was not aware of any wrongdoing by its employees, who have been charged with bribery and stealing trade secrets. Related article: Rio profits soar 33%
No trial date has been announced but a Chinese court official said the case could begin by the end of the month at the earliest.
"We continue to emphasise to the Chinese authorities the need for the case to be handled transparently and expeditiously," said a spokesman for Australian Foreign Minister Stephen Smith.
The four are accused of using their "positions to obtain benefits for others and on many occasions solicited or accepted bribes," China's state Xinhua news agency said late Wednesday.
Xinhua said they had also "on many occasions obtained the trade secrets of Chinese steel companies, leading to serious consequences for the relevant steel companies".
The case briefly snarled diplomatic ties between Beijing and Canberra, which have become major trading partners as China seeks commodities and energy to feed its rapid industrialisation.
"I think the business community will try to talk as if the Stern Hu situation is a unique one, but I they will realise that it's more than that," said John Lee, fellow of the Centre for Independent Studies think-tank.
"It's a commentary on the general risk of doing business with China."
At the time of the arrest of the four in July, analysts warned that the case would make international firms more cautious in their dealings with the world's third largest economy.
China needs iron ore for its massive steel industry, which with annual output of almost 570 million tonnes last year is the world's biggest.
A spokeswoman for Shanghai's Number One Intermediate People's Court said the trial was likely to be held behind closed doors.
"The case involves infringing commercial secrets, so the trial is unlikely to be open to the public," she told AFP. "If it is decided to be a closed-door trial, no media will be allowed."
Foreign ministry spokesman Ma Zhaoxu said China would handle the case "according to China-Australia consular agreements and relevant international conventions."
"The rights of the defendants will be fully guaranteed," he added.
A lawyer for one of the accused told AFP the trial was likely to be held in February or March. Wang Yong, Ge Minqiang, and Liu Caikui are the three Chinese nationals involved.
Analyst Lee, who has personally investigated the case, said Hu had little chance of being acquitted and expected a sentence of five to seven years.
"The mere possession of the information that Stern Hu had is illegal. I think there's no prospect of finding him innocent," he said.
Australian Deputy Prime Minister said Hu and his family were being provided with consular assistance.
"I don't want to speculate on the timing of the trial of Mr Hu and I certainly don't want to speculate on any matters which might occur during the trial."
(AFP - Friday, February 12)